Paraguay's public debt reached US$21.947 billion in the first half of 2026, with 83.5% of that amount concentrated in external obligations. According to data from the Ministry of Economy and Finance (MEF), the Central Administration's debt reached US$19.222 billion, representing 30.1% of the Gross Domestic Product (GDP).
Since 2024, the public debt balance has grown by 21.4%, driven by increases in both external and internal obligations. While external debt rose 16.6% in the period, internal debt advanced 53.1%, reflecting the de-dollarization strategy initiated in 2023. Still, 73% of the Central Administration's debt remains denominated in dollars, primarily from loans with multilateral organizations and sovereign bond issuances.
In the financial market, dollar-denominated credit also registered accelerated expansion. In the first half of the year, the portfolio of foreign currency loans grew at twice the rate of financing in guaranis, according to an analysis of sector data. The movement is led by export-oriented sectors, such as agriculture and foreign trade, which seek to reduce exchange rate risk by aligning the currency of their receivables with that of their debts.
In contrast, loans in guaranis continue to be driven by domestic consumption, housing, and services, reflecting demand from families and businesses focused on the local market. Experts warn, however, that dollar-denominated debt requires caution for those who do not have revenues in the same currency, due to the risk of guaranis depreciation.
The relative stability of the exchange rate in the first half favored the uptake of dollar credit, but international volatility or changes in global financial conditions could reverse this trend. Meanwhile, the banking system maintains liquidity to finance both the export sector and the domestic market, adapting its strategies to the currency of each segment.